Does PseudoCash depend on Bitcoin? According to the correlation analysis, BTC and PSEUD have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated based on the previous 100-days' price dynamics of both currencies.
This coefficient may change from -1 to 1, where -1 is the strongest negative correlation, 0 is no correlation at all and 1 is the strongest positive correlation.
The negative coefficient indicates that the prices of the cryptocurrencies are going in the contrary direction while the positive coefficient indicates that the prices are going in the identical trend. For example, if Bitcoin and PseudoCash connection is positively strong, it means that when BTC is rising PSEUD will grow as well. The negative strong relation will indicate that when BTC is rising PSEUD price will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over PseudoCash. If we take all the factors affecting the price of PSEUD as 100%, then the share of BTC price among these factors will be 82.81%. The other part which is 17.19% covers all the other circumstances, such as media, technological releases or politics.